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Perhaps ,Bitcoin will be a grave for investor.
I am a big believer in investing in what I know. For example, I like to look at companies whose business I understand—I understand how they make sales and generate their profits.
When it comes to investing for the long run, instead of just getting caught up in the noise, and running for “what’s hot” in the market, investors should do their own due diligence. The idea behind long-term investing is to have a portfolio that grows over time with minimized risks. By investing in securities like Bitcoin, this is certainly not achieved.
I believe the digital currency is currently in the price discovery mode. This is when the prices of a certain asset are evaluated through the marketplace. In this phase, there are wild fluctuations, because not a lot is known about the asset.
A portfolio that is well-diversified can go a long way. When it comes to Bitcoin, investors should wait and see how this all turns out. Getting involved in the digital currency now could drastically hurt their portfolio, and this can eventually set them back on their goals.
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